quora
Nobody downloaded yet

And write the effects of the money policies applied by the Fed - Research Paper Example

Comments (0) Cite this document
Summary
Effects of the money policies applied by the Fed Tutor Date: Introduction Fed money policy refers to economic measures undertaken by the United States Federal Reserve via the Central bank to control and regulate the amount of credit in the U.S economy (Brezina pp.8-19).Monetary policy aims at ensuring that economy has attained full employment as well as regulate the level of inflation…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Research and write the effects of the money policies applied by the Fed
Read TextPreview

Extract of sample
"And write the effects of the money policies applied by the Fed"

Download file to see previous pages What is Fed and how they work? Fed refers to the United States bank that acts as a lender of last resort to commercial banks. Fed is some times referred to as a bank of other banks. The bank manages and regulates commercial banks and other financial institutions. Fed may promote economic growth via manipulation of interest rates. Whereby, Fed may decide to either decrease or increase lending rates to stimulate the U.S economic growth. The rates may be adjusted to increase the level of inputs and employments as well as to reduce the level of inflation. Connectively, Fed may participate in an open market operation to issue or to buy treasury securities with an aim of promoting economic stability (Obringer pp.1-3). What are Fed monetary policies? How they work and how it affects the economy? A monetary policy refers to the actions taken by the Federal Reserve to influence the amount of money in the United States economy. The Federal monetary policies involve three basic tools namely; open market operation, reserve requirements and discount rates (Brezina pp. 19-20). Fed regulates the amount of money in circulation by participating in an open market operation, whereby, Fed buys and sell securities. ...
Whereby, high reserves requirements may reduce the amount of credit rendered by commercial banks. This may consequently leads to a decrease in circulation of money (Brezina, pp.5-20). In above connection, Fed may utilize discount rates to stimulate economic growth as well as promote economic stability. Fed decides either to increase or decrease the rates of interest charged to the commercial banks. For example, if Fed increases interest rates to commercial banks, borrowers become discouraged and hence there will be less money in circulation (Brezina pp.10-25). What does Fed currently do with their monetary policies? Fed utilizes monetary policies to stabilize commodity prices; to ensure there is maximum level of employment as well as ensuring that the level of inflation has been fully minimised. For instance, Fed may decide to reduce or increase the cost of credit by making adjustments on discount rates (Tucker pp.436). Additionally, Fed may utilize reserve requirements and open market operations to stimulate U.S economic growth. Both Classical and monetarist economist asserted that monetary policies may be utilized to make adjustments on aggregate demand as well as to influence the commodities general price levels. On the contrary, monetary economist asserted that monetary policies may be utilized to make interest rates adjustment. This may consequently cause change in real GDP and investments (Tucker pp.436-437). Fed uses unconventional monetary policy? How it works and what is it? Unconventional monetary policy refers to an economic tools employed by Federal reserves in a situation where discount rates and other interest rates cannot be reduced further in order to stimulate economic growth (Glick and Leduc, paras1-4). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Research and write the effects of the money policies applied by the Paper”, n.d.)
Research and write the effects of the money policies applied by the Paper. Retrieved from https://studentshare.org/macro-microeconomics/1475392-research-and-write-the-effects-of-the-money
(Research and Write the Effects of the Money Policies Applied by the Paper)
Research and Write the Effects of the Money Policies Applied by the Paper. https://studentshare.org/macro-microeconomics/1475392-research-and-write-the-effects-of-the-money.
“Research and Write the Effects of the Money Policies Applied by the Paper”, n.d. https://studentshare.org/macro-microeconomics/1475392-research-and-write-the-effects-of-the-money.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The effects Hip Hop have a society, money, and cars today
Hip hop started as a non commercial, independent musical and cultural form of expression. Rather it was all about enjoyment and having fun, nobody thought it could fetch money. DJ Kool Herc gets viewed to be the founder of hip hop; he could mix samples of existing records with his own shouts to the dancers and crowds.
6 Pages(1500 words)Research Paper
APPLIED MANAGERIAL ECONOMICS Research Questions
Renewable resources include water, air, etc, while non-renewable ones are inclusive of fossil fuels. Artificial resources on the other hand, are man-made ones and might include a factory building. b) The productivities of factors of production are often considered to be enhanced with the availability of resources in the economy, since industrial production is a direct positive function of growth in natural resource component as well and hikes in industrial production assists in enhancing factor productivity.
6 Pages(1500 words)Research Paper
The Perceived Effects of US Foreign Aid: the American Policies that shape Global Diplomacy
Military assistance is provided by developed nations to the weaker ones in order to defend themselves from foreign military attacks or to find solutions for internal issues like domestic terrorist attacks, civil wars and communal riots. Natural calamities such as earth quakes, volcanic eruption, cyclones and tsunami necessitate the intervention of wealthy and powerful nations to support the suffering nations.
20 Pages(5000 words)Research Paper
Should the Fed Focus on the Role of Money in the Conduct of Monetary Policy
They basically seek a reduction in risk before investing their money (Smets 1260). Due to this, decision makers need clarity about price rises, joblessness, interest rates plus economic escalation. The government can influence these factors through monetary policy (MCcallum 1787).
3 Pages(750 words)Research Paper
Write a research paper
It is believed that Chinese society that living in America is the largest foreign community outside Asia. This essay describes the cultural identity of Chinese Americans, which includes aspects such as self-perception of their nationality, social status in the
4 Pages(1000 words)Research Paper
Research background information about crime prevention policies
For instance, a report given in 2005 from the National Academy of Sciences claimed that there was very little evidence concerning the best methods of reducing gun violence in the United States. Although various
2 Pages(500 words)Research Paper
Research on the effects of water pollution
In the writings by Agarwal (2008, p. 48), he described pollution as “the presence or the introduction of materials or substances that have poisonous or harmful effect on living organisms on earth that include human beings, plants, and animals.” In a separate study
16 Pages(4000 words)Research Paper
Applied Research Project Capstone: Research Project
Respectively, data required for this particular research has been obtained from secondary sources comprising journals, online
25 Pages(6250 words)Research Paper
Write 4 page research paper
Arabs America constitutes the many tribal groups that make up the United States population. Arabs started coming to the United States since 1800s. Just like other immigrants, they were attracted by educational and economic opportunities that were in
4 Pages(1000 words)Research Paper
Applied Research
In this case, it is acknowledgeable that research could manifest in either theoretical form or practical form. Within both academic and professional contexts, research is divided into two distinct groups namely;
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Research Paper on topic Research and write the effects of the money policies applied by the Fed for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us